India’s instant payments system is set for a significant change, as the Reserve Bank of India (RBI) proposes a one-hour delay on certain Unified Payments Interface (UPI) transactions to curb rising fraud.
Fraud cases on UPI have increased tenfold since 2021, prompting regulators to introduce a delay on authorised push payments (APP) above roughly $107. Under the proposal, funds would be provisionally debited, but users would have one hour to cancel transactions if fraud is detected.
The move was discussed on the Payment Expert podcast, where Lewis Thompson hosted Callum Williams and Kieran O’Connor. The three described the delay as a necessary trade-off between speed and security in real-time payments.
O’Connor said the change reflects a wider issue across global markets. He noted that no system has fully solved fraud within instant payment windows, adding that the RBI should be credited for prioritising user protection.
The discussion compared India’s approach with other regions. In Brazil, the Pix network keeps instant payments but allows up to seven days for fraud investigations after transactions. India’s model instead adds a pre-transaction buffer, giving users more control.
The United Kingdom has taken a different route, focusing on liability rules rather than payment delays. New regulations cap APP fraud reimbursement at £85,000, placing more responsibility on financial institutions.
Meanwhile, the European Union is pushing ahead with instant payments and will require “Verification of Payee” checks from October 2025. However, the panel highlighted that penalties focus on processing speed, with less emphasis on fraud prevention.
The podcast also pointed to social media as a major source of scams, despite payment providers carrying most of the liability.
The RBI’s proposal shows a shift in priorities. As instant payments expand globally, regulators are increasingly willing to introduce friction to reduce fraud risk.
